Fobi AI Announces Completion Of Non-Brokered Private Placement

Core Viewpoint - Fobi AI Inc. has successfully completed the third tranche of a non-brokered private placement financing, raising a total of $1,354,200 through the issuance of 27,084,000 units at a price of $0.05 per unit, which includes common shares and warrants [1][2]. Financing Details - The third tranche consisted of 7,000,000 units sold at C$0.05 each, generating gross proceeds of $350,000 [2]. - Each unit includes one common share and one warrant, with the warrant allowing the purchase of an additional common share at C$0.10 for 36 months [2]. - The securities issued are subject to a four-month and one-day hold period as per TSX Venture Exchange policies [2]. Finder's Fee Agreements - The company has entered into agreements with Haywood Securities Inc. and Ventum Financial Corp. for finder's fees, resulting in a cash payment of $17,500 and the issuance of 350,000 non-transferrable finder warrants [3]. Management Commentary - The CEO of Fobi expressed satisfaction with the closing of the offering, acknowledging the challenges in raising capital in small cap markets, particularly due to the company's existing CTO and broader market conditions [4]. - The company remains focused on disciplined execution and regulatory compliance, viewing this closing as a significant milestone towards relisting approval and resuming trading [5]. Future Plans - The net proceeds from the offering will be allocated towards sales and marketing, product expansion, market expansion, and general working capital [6]. - The company plans to focus on completing its Annual 2025, Q1/26, and Q2/26 financial filings following this milestone [6]. Regulatory Context - The company is currently under a CTO due to the failure to file certain disclosure documents, but a partial revocation order has been granted to allow the completion of the offering [7]. - The company is actively working to remedy the default and aims to apply for a full revocation of the CTO upon completing outstanding filings [7].